Charging Order? The myth

happysmiles_2

Hi,
I recently split up with someone and I owe him some money. I am making arrangements to pay him back, hopefully in full, in the next two weeks. I haven't made a payment yet. But I do want to clear the debt and feel I can do so in a couple of weeks. He has threatened to put a legal charge on my property and says he can do this very quickly and easily. It seems he is wanting to do this before I have the funds to pay him back. How easy and quickly can he place a legal charge on my property?

fatbelly

Not in 2 weeks, that's for sure.

Sounds like a right idiot.

endora

Putting a charge on someone's property requires going to court and obtaining judgment in their favour in the first instance. Once they have a CCJ in their favour they'll have to apply for a CO so it's a long process and you'll have the opportunity to defend every step of the way.

You'll have to receive court papers, you'll have to acknowledge and decide whether you want to defend, admit the whole debt or part of the debt. Depending on the above there may be a hearing, all just for the initial CCJ. Applying for a CO is a step further.

Don't let them scare you into thinking putting a charge on your property is something that can be done in two weeks! It's a lengthy process and has to be run through the legal system.

National_Debtline

Hi there

Just to add to the replies above, the courts would expect him to have observed the Practice Direction. In layman's terms, this means he would have to make reasonable efforts to negotiate informally prior to launching any court action - if it was felt that he had not, the court could award costs against hime, which could leave himout of pocket, not to mention feeling a tad silly. Here is one small excerpt from the Direction:

The claimant should set out the details in writing. This is the letter before claim (what used to be called the Pre-Action Notice, or PAN letter).

• The claimant should provide details of how the money can be paid.
• The claimant should provide relevant contact details and explain that the defendant can contact the claimant to discuss ways of repaying the debt.
• The claimant should explain to the defendant that they can seek free independent advice from organisations such as National Debtline, CCCS and Citizens Advice Bureaux.

So really, it sounds unlikely that he will be able/willing to satisfy all of these requirements, at least within the next fortnight.

eggbox

Just to update this thread that the MOJ has now raised the minimum threshold creditors can apply for Orders For Sale to £1000. Full paper here;
http://www.consumeractiongroup.co.uk/forum/attachment.php?attachmentid=34701

Particularly interesting is a section at the end;

3.1 Compliance with a judgment order would continue to be the responsibility of judgment debtors. As long as the judgment debtor meets the conditions of a judgment order or instalment payments agreed and continues to engage with the creditor if difficulties or changes in circumstances occur, the need for the creditor to seek an order for sale is obviated. Should the judgment debtor default, the creditor may apply to the court for an order for sale (but as case law & TOLATA protects jointly owned, primary residences and those with dependents resident, this is only likely in cases concerning single owned properties, stocks, unit trusts or funds in court or secondary properties or land where the creditor can be assured of sufficient equity to cover the costs of the sale).

Confirming why creditors don't proceed with OFS on jointly owned property.

Sparklyfairy

Great stuff. You have many valid points on there, Egg - thank you for fighting the good fight on the CAG...xxx

eggbox

Thanks Sparkly!

It's really strange on CAG at times as you get "certain" people stating how "difficult" or "impossible" it is to sell a house with a Restriction without paying the creditor who then (after a little battle on the subject) start agreeing it's possible to be done?

I can only assume they are either in the legal profession, but aren't Solicitors, and it gives them a feel of importance trying to explain how difficult it is to rock the almighty legal system?

As we saw with Dawny's case, when confronted with the facts they have to act accordingly.

Linda3

Hello... Can someone please help me.. My ex husband had a interim charging order put on our house after we had got Divorced for £10,000. Very sadly my ex husband killed himself in Feburary this year... due to lots of debts ( £25,000 worth.. which have now come to me, as my name is on them... even though there is proof that he is the one who ran them up after we split up, that is apart from the charging order) The Charging order is a debt in his name only... Can the charging order be taken off my house now that my ex husband has died... I am in a right state... my ex husband left behind our 7 year old son, who doted on his dad... it is hard enough me trying to watch my son through his sorrow, without the worry that we could end up homeless... I have lived in my home for 16 years and already had my house when I met my ex husband and put his name on it when we got married in 2003, we split in 2008. Please if anyone can give me some advice... Thank you... Linda

Sparklyfairy

Linda, I am so so sorry about what you have to go though..I wanted to give this a little bump - I'm unsure how to advise you unfortunately - so maybe someone else can pop on with more advice. In the meantime, can you call National Debtline 0808 808 4000 & hopefully they can shed some light on your situation. XX

Sparklyfairy

eggbox wrote: »

Just to update this thread that the MOJ has now raised the minimum threshold creditors can apply for Orders For Sale to £1000. Full paper here;
http://www.consumeractiongroup.co.uk/forum/attachment.php?attachmentid=34701

Particularly interesting is a section at the end;

3.1 Compliance with a judgment order would continue to be the responsibility of judgment debtors. As long as the judgment debtor meets the conditions of a judgment order or instalment payments agreed and continues to engage with the creditor if difficulties or changes in circumstances occur, the need for the creditor to seek an order for sale is obviated. Should the judgment debtor default, the creditor may apply to the court for an order for sale (but as case law & TOLATA protects jointly owned, primary residences and those with dependents resident, this is only likely in cases concerning single owned properties, stocks, unit trusts or funds in court or secondary properties or land where the creditor can be assured of sufficient equity to cover the costs of the sale).

Confirming why creditors don't proceed with OFS on jointly owned property.

Interesting. Especially for those who have an instalment order with a Restriction...essentially no further action could be taken should we stop making payments...